Dollar up vs. yen but slips vs. euro, pound in thin trading

LisaTwaronite

SAN FRANCISCO (MarketWatch)-- The dollar gained on the yen Friday but gave up a bit of ground to other major rivals in thin pre-holiday market conditions, despite strong U.S. consumer spending data and a higher-than-expected year-over-year core inflation figure that suggested the Federal Reserve has less leeway to further cut interest rates. "The combination of stronger consumption and stronger inflation should be dollar-positive. However, the lack of participation and the fading of the dollar's upside momentum argues against much of a market reaction," said Marc Chandler, currency strategist at Brown Brothers Harriman. The dollar index, which tracks the greenback against a basket of six major currencies, was at 77.595, compared with 77.795 late Thursday. The euro was trading at $1.4379, up from $1.4321 late Thursday, while the pound was at $1.9846, up from $1.9829. Against Japan's currency, the dollar was buying 113.75 yen, compared with 113.06 yen Thursday.

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